Department of Defense Calls for Military Payday Loan Tightening
By J.J. CameronPayday Loan Writer
Let's see … the Pentagon recently cited examples of how military payday loans can be dangerous resources for the armed forces. And now?
The Defense Department is chiming it. It says the number of soldiers denied a security clearance over the past five years has increased 1,600% - because so many are having problems with these high-interest, short-term faxless payday loans. Pentagon spokesman Lieutenant Colonel Mark Ballasteros says military personnel are being targeted.
"These types of institutions are prevalent around military installations. They tend to seek out young service members who are inexperienced in the world of credit, but have access to a steady flow of cash," he said.
The Senate passed an amendment in June that would establish a 36% interest rate cap for military borrowers; the bill is awaiting approval in conference committee.
The Defense Department said although Oregon tightened its laws on savings account payday loans, the lenders have found loopholes to avoid the new restrictions. This is a problem that still needs to be addressed, Oregon Public Broadcasting recently stated.
